A zero balance savings account does not have minimum balance or monthly average balance requirements.

India Post Payments Bank (IPPB), which recently started its operations, offers the facility of opening a basic savings bank deposit or BSBD account - a zero balance saving account - which is also offered by other leading lenders like SBI or State Bank of India. A zero balance savings account does not have any minimum balance requirements or monthly average balance requirements. The interest rate on zero balance saving accounts of both SBI and IPPB is the same as on regular savings accounts. There are, however, some restrictions in terms of withdrawal limits from zero balance accounts of SBI and IPPB.

Given below is a comparison of features, interest rates and other details of zero balance savings accounts of SBI, IPPB:

Zero balance savings account of SBI

Eligibility: SBI zero balance savings account can be opened by any individual provided he/she has valid KYC or know your customer documents, according to sbi.co.in.

Mode of Operation: SBI zero balance saving account can be operated singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc. facility.

Operations in SBI zero balance account: Customers can withdraw money from SBI zero balance accounts using withdrawal forms at branches or through ATMs. A basic RuPayATM-cum-debit card is issued to all holders of SBI zero balance savings accounts.

Service charges for operating SBI zero balance savings accounts: The basic RuPay ATM-cum-Debit card is issued free of cost and no annual maintenance charge is applied to it. The receipt/ credit of money through electronic payment channels like NEFT/RTGS is free. Deposit/ collection of cheques drawn by central/state government is free.

There is no charge on activation of inoperative accounts and on closure of accounts.

Terms and conditions: Customers cannot have any other savings bank account, if he/she has a Basic Savings Bank Deposit Account with SBI. If the customer already has a savings bank account with SBI, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account.

A maximum of four withdrawals are allowed in a month, including ATM withdrawals at own and other bank's ATMs and transactions through other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits are allowed during the month.

Zero balance savings account of India Post Payments Bank (IPPB)

Eligibility: Anybody above 10 years of age with verified KYC details can open the account, said IPPB on its website ippbonline.com.

Initial Minimum Deposit: Customers are not required to maintain any initial minimum deposit in this account.

Minimum Account Balance: Customers need not maintain any minimum balance in this account.

Maximum End of Day Balance: The maximum balance that an IPPB zero balance saving account holder can maintain is Rs 1,00,000.

Nomination Facility: A nomination facility is available to all IPPB zero balance savings account holders.

Linkage of POSA Account: Customers can link their IPPB BSBD account with their Post Office Savings Account (POSA) account. If they link the two accounts, amount above 1 lakh at the end of the day will be transferred to the linked POSA account.

Monthly Average Balance (MAB): Customers ae not required to maintain a monthly average balance. Thus, no charge is levied in case of non-maintenance of monthly average balance as in the case of savings accounts.

Account Statement: A quarterly e-statement or physical statement is issued free of cost to customers. Physical statements are, however, subject to minimum one customer-induced transaction in that quarter. An additional physical statement is chargeable at Rs 50.